Most US stocks rise as oil prices ease, but slumping AI stars weigh on Wall Street
U.S. stocks saw mixed performance on Thursday, with the S&P 500 rising 0.3% and the Dow Jones climbing 1.8% amid easing oil prices, while AI-focused stocks like Broadcom and Micron Technology dropped sharply despite strong earnings. Investors appear cautious after nine consecutive winning weeks for the S&P 500, with analysts warning of potential market slowdowns.
U.S. stock markets showed mixed movements on Thursday, with most stocks rising but AI-related companies dragging down overall gains. The S&P 500 increased by 0.3% after falling short of its longest winning streak in decades, while the Dow Jones Industrial Average climbed 925 points (1.8%) and the Nasdaq Composite slipped 0.2%. Oil prices eased by 2.8%, dropping Brent crude to $95.10 per barrel, easing concerns over inflation after recent tensions in the Strait of Hormuz. Strong corporate earnings helped fuel gains, with Elanco Animal Health rising 2% and Zoetis climbing 3.8% due to expectations of higher profits after the U.S. Department of Agriculture confirmed the New World screwworm fly had reached south Texas. Toro, a maker of lawn equipment, also surged 2.1% after reporting better-than-expected profits and raising its revenue forecasts for the year. Despite positive earnings, AI-focused stocks faced steep declines. Broadcom dropped 14.7%, even though its AI semiconductor revenue more than doubled to $10.8 billion in the quarter, with CEO Hock Tan predicting 200% growth in the current period. Micron Technology, now worth over $1 trillion due to AI demand, fell 6.5%, while CrowdStrike Holdings lost 6.1%. Analysts suggest AI stocks may have become overvalued, raising concerns about a broader market slowdown after nine straight weeks of S&P 500 gains.
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